Texas Instruments Inc.
TXN 2.85%
on Wednesday gave a soft outlook for its current quarter, as the company continues to struggle with weak demand for its communications equipment.

Dallas-based TI said it expects to earn 62 cents to 72 cents a share on revenue of $3.15 billion to $3.41 billion for the third quarter. Analysts polled by Thomson Reuters had forecast 75 cents a share in earnings on $3.47 billion in revenue.

Founded in 1930 as Geophysical Service Inc., Texas Instruments initially focused on reflection seismography in search of oil. TI, which now makes chips used in everything from cellphones to industrial equipment, has been moving away from digital chips to focus on analog chips, which often command lower prices but can be produced with older equipment at a high profit.

TI has seen lackluster demand for personal electronics, particularly in PCs, and communications equipment in recent months. In the latest quarter, TI said it saw strong demand in its automotive business and slight growth for its core analog business.

Sales in the analog segment, which accounts for the largest share of its revenue, grew 2.7% to $2.05 billion, while embedded processing revenue, which includes processors and microcontrollers, edged down 1.8% to $690 million.

Overall, TI reported a profit of $696 million, or 65 cents a share, up from $683 million, or 62 cents a share, a year earlier. Lower research and development costs helped bolster the bottom line.

Revenue edged down 1.8% to $3.23 billion.

TI had forecast 60 cents to 70 cents a share in earnings on revenue of $3.12 billion to $3.38 billion for the quarter.